Current Yield

Fed Apt to Stand Pat; Muni Junk for the
Yield-Starved

No rate cut this week, maybe later; junk munis' allure.

ANTICIPATING AN ECONOMIC ACCELERATION in the second half of the year as geopolitical and financial conditions improve, the Federal Reserve's policy-setting Open Market Committee is unlikely to cut short-term interest rates this week. But a parade of weak recent data may shift the panel's leaning toward further easing.

"It is likely that the FOMC will adopt a formal view that the risks to the outlook are tilted toward economic weakness," say economists at Goldman Sachs. At its last official meeting in March, the...